Status quo at Renault-Nissan must be changed: French finance minister

"The status quo is not possible, the status quo is weakening the overall group, we have to push forward, make progress and consolidate this alliance," Le Maire told reporters at a meeting held at the OECD.REUTERS | May 23, 2019, 16:34 IST

The unequal relationship between them - smaller Renault has the bigger stake in Nissan - has long been a source of friction. PARIS: The current status quo regarding the alliance between French carmaker Renault and its Japanese partner Nissan cannot continue and must be changed as it is currently weakening Renault, said French finance minister Bruno Le Maire.

"The status quo is not possible, the status quo is weakening the overall group, we have to push forward, make progress and consolidate this alliance," Le Maire told reporters at a meeting held at the OECD.

Le Maire had earlier discussed the matter with Japanese industry minister Hiroshige Seko.

Nissan said earlier this month that Hiroto Saikawa would stay on as chief executive, backing the protege of former boss Carlos Ghosn even as top shareholder Renault had earlier pushed for a change in the Japanese automaker's leadership.

The make-up of Nissan's board has vast implications for the Nissan-Renault alliance. The unequal relationship between them - smaller Renault has the bigger stake in Nissan - has long been a source of friction.

In fact, segment leaders like Maruti Suzuki, Tata Motors and Hero MotoCorp have reported de-growth of 34.3 per cent, 45 per cent and 20 per cent, respectively giving a clear indication of a prolonged slowdown in the sector.